CIRTEK Holdings Philippines Corp. (CHPC) has raised US$67 million (P3.4 billion) from the issuance of dollar-denominated preferred shares, it told the stock exchange on Friday.

The electronics manufacturer said that the demand for its dollar-denominated preferred shares was “significant”, particularly from retail investors. The offering was conducted from November 16 to 29.

“At the higher end of the pricing range of 6.25-6.75% p.a., indicative demand was US$110 [million]. We eventually settled for a dividend rate of 6.125% p.a. which was still within Cirtek’s blended cost of debt, and at the same time gives a very decent return to investors,” Cirtek Chief Finance Officer Anthony Albert S. Buyawe said in a statement.

“The strong reception from retail investors reflect the growing acceptance and demand for dollar denominated products in the Philippine capital market,” the same statement quoted Roberto Juanchito T. Dispo, Vice Chairman and CEO of Cirtek as saying.

Proceeds from the preferred shares offering will be used to partly fund strategic acquisitions, as well as for debt retirement, capacity expansion, and research and development.

The Philippine Stock Exchange (PSE) last month approved CHPC’s bid to launch its offering of up to $200 million, according to a Nov. 13 disclosure.

CHPC announced in October that it planned to issue $200 million worth of preferred shares by November or December, mainly to pay debts incurred after acquiring United States-based antenna firm Quintel in July for $77 million.

The company had said in October that it is looking to grow revenues of Quintel to $500 million in the next three to five years.

Mr. Dispo at that time said that once Quintel reaches its revenue target of $500 million, CHPC will probably list the company on the Nasdaq Stock Market. — PPCM

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